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Based on the following income statement, answer the questions: Item Value ($ millions) Revenue 1200 Cost of Goods Sold 700 Operating Expenses 300 Interest Expense
- Based on the following income statement, answer the questions:
Item | Value ($ millions) |
Revenue | 1200 |
Cost of Goods Sold | 700 |
Operating Expenses | 300 |
Interest Expense | 25 |
Tax Expense | 35 |
- a. What is the Gross Profit? b. Calculate the Operating Income. c. Determine the Net Income. d. What is the Interest Coverage Ratio (Operating Income / Interest Expense)?
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
